NNPCL, TotalEnergies-Sapetro Sign Nigeria’s First Deepwater PSC

 The Nigerian National Petroleum Company Limited and TotalEnergies-Sapetro have signed a landmark deepwater Production Sharing Contract, boosting Nigeria’s oil sector.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) announced the signing of Nigeria’s first deepwater Production Sharing Contract (PSC) between the Nigerian National Petroleum Company Limited (NNPCL) and TotalEnergies-South Atlantic Petroleum (Sapetro) for Petroleum Prospecting Licences 2000 and 2001. The agreement, finalized in Abuja, covers over 2,000 square kilometers in the Niger Delta Basin, marking a pivotal moment for Nigeria’s oil industry. NUPRC chief Gbenga Komolafe described the signing as a foundation for energy security and investment.

The PSC, awarded through the 2024 Licensing Round, aims to enhance oil production and attract foreign investment, aligning with President Bola Tinubu’s reforms, including Executive Orders on fiscal incentives. NNPCL’s Bashir Ojulari emphasized the contract’s gas monetization terms, supporting Nigeria’s commercialization goals. TotalEnergies’ Mathieu Bouyer reaffirmed commitment to swift exploration, leveraging the company’s long-standing presence in Nigeria. The deal follows Nigeria’s push to revitalize its oil sector amid global energy transitions.

The agreement has sparked optimism, with some seeing it as a boost to Nigeria’s economy, while others highlight environmental concerns in deepwater exploration. The PSC tests Nigeria’s ability to balance growth with sustainability. As exploration begins, the contract could position Nigeria as a key player in global energy markets, influencing economic and environmental policies.